Refrigeration is progressing as a keystone of a supermarket to sell fresh goods. Currently, supermarkets and grocery stores are focusing on energy efficiency coupled with refrigeration to withstand the competency around. Because of this, the acceptance of commercial refrigeration in the supermarket sector is going to determine the future for the same. The concept of saving energy in the supermarkets has been acting as a significant factor for innovating commercial refrigeration technology. Moreover, passionate store owners are considering efficiency on a higher priority to invest in commercial refrigeration equipment, especially for either the frozen foods or prepared foods. Besides, businesses are willing to invest in new energy-efficient appliances as they encourage energy savings and supports a healthy financial return as well. Increase in refrigeration necessity at every food-service operation is driving the commercial refrigeration equipment market demand worldwide. Commercial grade refrigerator plays a vital role in a food service establishment as it is useful to store ingredients, leftovers, sauces, and frozen meals.
Additionally, it helps preserve perishable foods and also in eliminating waste as well. The food-service providers widely accept this equipment as it maintains the food at safe temperatures, thereby offering convenient features such as adjustable shelves, wheels for transport, and LED lighting. This refrigeration equipment is gaining traction from bar, bakery, convenience store, restaurant, and sandwich shop owners because it supports a successful business operation. As a result, the global Commercial Refrigeration Equipment Market size stood at $34.5 billion in 2018 and is projected to grow at a progressive CAGR of 5.9%, over the forecast period 2019-2025.
At present, to run a profitable commercial kitchen, commercial refrigerators are imperative. Increase in demand for food-service everywhere has been influencing the emergence of a wide variety of refrigeration equipment for different purposes, which include cooling, preparation needs, and food storage. Hence, there is a growth in the requirement of this equipment, which is leading to an expansion in the commercial refrigeration market size. Freezers, display chillers, bar units, upright chillers, and island units are the most extensively used commercial refrigeration equipment to tailor every hospitality need. Moreover, the wide range of use of food and beverage storage equipment is boosting the adoption rate of refrigeration equipment in restaurants, catering establishments, hotels, and fast-food outlets. Thus, the manufacturers are involved in creating novel designs of commercial refrigerant equipment such as refrigerators, freezers, transportation refrigeration, refrigerated display case, beverage refrigeration, ice cream merchandiser, and a refrigerated vending machine to meet the changing customer’s demands. Presently, these equipment are available in varied upright and counter styles. Blast chillers, freezers, and food server equipment are produced especially for hot food storage and plating-up. Currently, commercial cabinets which are manufactured using efficient and powerful refrigeration units are highly preferred by the distribution channel owners. This is because it is easy to operate these cabinets even in high ambient temperatures and also with the latest hydrocarbon energy-efficient refrigerant R290.
Commercial Refrigeration Equipment Market Trends 2019:
· Refrigeration is playing a crucial role in the global economy, due to its significant contributions in health, food, thermal comfort, and environmental protection areas.
· Plant-based foods such as meatless burgers along with the consumer shift towards the vegetable-based food are increasing the requirement of commercial refrigeration equipment. In addition to this, Bill Gates, Leonardo DiCaprio, and Richard Branson million-dollar investments into plant-based protein substitutes are also contributing to freezer space. Plant-based products prominence in the menu space of restaurants and food-service operations is enhancing the necessity of refrigeration equipment at the same.
· Prevalence of deep food traditions such as Filipino and Israeli cuisines, as they mainly focused on fresh ingredients. Thus, the need for serving the cucumber and tomato salads by preserving them under optimal condition using commercial refrigeration is in demand.
· Hyperlocal sourcing deals with the growth of herbs in a greenhouse behind the bar, vegetable gardens near the restaurant parking lot, which leads to fresh foods and food waste reduction. Hence, it needs commercial refrigeration to preserve fresh ingredients for a long time and also to ensure safe food-service. These requirements are boosting the growth of the commercial refrigeration equipment market.
· A new era of traditional refrigerator drifted from refrigerators with top-mount freezers to sleek bottom-freezer units, hybrid French door models, and professional side-by-sides. It is owing to the manufacturer’s attentiveness in designing today’s energy-efficient refrigeration appliances, which in return offers energy savings.
Convenience Stores Gaining Traction from Millennial and Online Retailers:
Convenience stores are identified as the fastest-growing application of commercial refrigeration equipment market. It is set to grow at a CAGR of 6.5% through to 2025. This is due to the rise in demand for unique refrigeration essentials such as beverage coolers, beer caves, deli cases, and reach-in displays more in convenience stores compared to hotels & restaurants, supermarkets & hypermarkets and bakeries. Recently, Amazon announced that it is going to grow its line of Amazon Go convenience stores shortly in America. Footsteps of e-commerce retailers towards the convenience stores are fuelling the demand for refrigeration equipment, which in turn results in the growth of the global commercial refrigeration equipment revenue.
Commercial Refrigeration Market Dominating in North America Region:
North America occupied a leading share of 35% among other regions in the global commercial refrigeration equipment market, as of 2018. 7-Eleven, Alimentation Couche-Tard Inc., Speedway LLC, Casey's General Stores Inc., Murphy USA Inc., GPM Investments LLC, BP America Inc., EG Group, Wawa Inc. and Extra Mile Convenience Stores LLC are the major convenience store chains which are operative in the U.S., as of 2019. Availability of these stores offers benefits to travelers as they provide ready-to-eat and prepared foods on a large scale to fulfill the customer’s hunger in a short span. In addition to this, these stores attract a large number of customers daily with popular food items, long hours of operation, and also with their presence in convenient locations. According to the National Association of Convenience Stores, 153,237 convenience store channels are present in the U.S. up to 2018. This count of convenience stores is increasing the need for a significant number of commercial refrigeration equipment such as highly efficient refrigeration and freezing systems at the same, to satisfy the demand of customers. On the other hand, trails involved in raising the number of footfalls at the convenience stores have been contributing to the growth of the North America commercial refrigeration market. Texas, California, and Florida are the top three states which hare experiencing the growth mostly from the large convenience store chains. New entrants from the global companies, specifically in Chile and the U.K. to the U.S. market are increasing the scope of opportunities associated with the commercial refrigeration market.
Major Players in Commercial Refrigeration Equipment Market Include:
Carnot Refrigeration, Carrier Corporation, Emerson Electric Company, Daikin Industries, Ltd., Hussman Corporation, Bharat Refrigerations Pvt. Ltd., Henry Technologies, Johnson Controls, Evapco, Inc. and The Danfoss Group are some of the primary players which are operating in the global commercial refrigeration equipment market. These companies have been continuously concentrating on acquisitions to strengthen their customer base in respective geographies.
Business Strategies Impacting Commercial Refrigeration Marketplace:
· In 2019, Whole Food Market Daily Shop inaugurated a new convenience store in Chelsea. This store is majorly sorted with Whole Foods staples, grocery items, prepared foods, pet food, and fresh produce such as mangos and avocados, travel-sized products. It also has a curated flower section. It is mainly focusing on local products and driving the necessity of refrigeration equipment in the America region. Recently, this shop has joined into the list of Amazon’s brick and mortar concepts in New York City. Thus, the foot-step of an online retailer is influencing the growth of the commercial refrigeration equipment market in the U.S.
· AHT Group is one of the leading companies in the European commercial refrigeration market. In 2018, Daikin Industries, Ltd. acquired AHT Group by signing an agreement for an amount of 881 million Euros. This agreement is aimed to expand the commercial refrigeration market revenues of Daikin in addition to its refrigeration showcases segment. Daikin is adding AHT showcases to its product and service portfolio related to its air conditioning and refrigeration equipment through this acquisition.
Furthermore, it enables the company to be a one-stop provider of refrigeration products and also to solidify Daikin's business foundation in Europe. On the other hand, it is promoting the full-scale expansion of Daikin’s refrigeration business in both the U.S. and Asia. This business expansion is reflecting the demand influx in the commercial refrigeration equipment market.
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